United Retail Grocers Asso. v. Commissioner
United States Board of Tax Appeals
GROSS INCOME. - Petitioner is a trade association incorporated in the State of New York and organized for profit, which profits inure to the benefit of its stockholders. There is no evidence that the dues of stockholders were intended or were accounted for, as contributed additional capital; on the contrary, the dues had no relation to the stockholdings and were paid in consideration of the valuable services of the corporation and of the benefits of membership.
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GROSS INCOME. - Petitioner is a trade association incorporated in the State of New York and organized for profit, which profits inure to the benefit of its stockholders. There is no evidence that the dues of stockholders were intended or were accounted for, as contributed additional capital; on the contrary, the dues had no relation to the stockholdings and were paid in consideration of the valuable services of the corporation and of the benefits of membership. Held, the dues paid in by the stockholders should be included in gross income. Pontiac Employees Mutual Benefit Association,15 B.T.A.…
1Opinion of the Court
*1018OPINION.
Trussell:
The petitioner is a trade association incorporated in 1907 pursuant to the Business Corporation Law of the State of New York. The powers, purposes and objects of the petitioner are set out in the findings and need not be repeated here. The petitioner is organized for profit, and the profits inure to the benefit of the stockholders; it is not disputed that the corporation is subject to the Federal income tax. The single issue for decision is whether the “ dues ” paid in by the stockholders are taxable income as determined by the respondent or contributed capital as claimed by…
2Cited by10 opinions
- United Grocers, Ltd. v. United StatesDistrict Court, N.D. California · 1960
- Jockey Club v. CommissionerUnited States Board of Tax Appeals · 1934
- FEDERAL EMPLOYEES'DISTRIBUTING COMPANY v. United StatesDistrict Court, S.D. California · 1962
- Affiliated Government Employees' Distributing Co. v. CommissionerUnited States Tax Court · 1962
- Affiliated Government Employees' Distributing Co. v. CommissionerUnited States Tax Court · 1962
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